defense spending

Reagan Budget Director David Stockman: ‘We Are Heading Into An Absolute Fiscal Bloodbath’

I’ m pretty sure I’ve never brought up David Stockman before on this blog, but what he’s warning about the nation’s finances is worth mentioning tonight. Stockman is a former two-term Congressman from Michigan, Director of the Office of Management and Budget under President Reagan, Wall Street veteran, and author. On Wednesday, he appeared on the FOX Business Channel show Mornings with Maria and talked about President Trump and the national debt. Stockman warned viewers:

We are heading into an absolute fiscal bloodbath. As the CBO put out yesterday, there’s $10 trillion of more debt built into the next decade, even before one dime of tax cuts from Trump or infrastructure spending or increasing defense like he wants to. And so what I suggest is that we have an even more absurd fiscal proposition from Donald Trump today than we did back in 1981 when we tried to cut taxes, increase defense substantially, and balance the budget. They are going to be in a crisis within weeks. The debt ceiling was suspended arbitrarily until March 15. When it comes back into effect there will be $20 trillion of debt. And before they can do anything on all of this stimulus they’re talking about they’re going to have to raise the debt ceiling and where are the votes going to come from? It’s going to make 2011, if you remember the debt ceiling crisis in 2011, look like a Sunday school picnic. We’re in bad shape.


“David Stockman: We are heading into an absolute fiscal bloodbath”
FOX Business Channel Video

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information contained herein.)

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Resource Of The Week: Comeback America Initiative’s ‘Slide Pack’

Before I introduce the latest “Resource of the Week,” I want to recap all the prior ROTW’s since Survival And Prosperity came out last November for those who might have missed them (the posts are also archived in the sidebar under “Categories,” “Resource Of The Week”). Starting from the beginning:

“Survival Database Downloads”– A multitude of survival-related downloads compiled by “Rourke” on ModernSurvivalOnline.com, “Thoughts on Survival and the World Today”
Shadow Government Statistics– Home of John Williams’ Shadow Government Statistics electronic newsletter, which “exposes and analyzes flaws in current U.S. government economic data and reporting, as well as in certain private-sector numbers, and provides an assessment of underlying economic and financial conditions, net of financial-market and political hype”
Financial Sense® Newshour– Financial/market broadcast hosted by money manager Jim Puplava on the week’s market action, interviews with financial experts, and Jim’s personal perspective on the markets/economy
STRATFOR– Website for “The Shadow CIA.” That’s what Barron’s once called Strategic Forecasting, Inc., or STRATFOR, a global intelligence company that distributes a number of intel products, two of them being the free reports Geopolitical Weekly and Security Weekly.
The Survival Podcast– Daily online audio show hosted by modern survivalist Jack Spirko that focuses on self-sufficiency and self-reliance in the modern world
Weiss Ratings’ “Strongest & Weakest Lists”– Weiss Ratings’ lists of their strongest and weakest-rated annuity insurers, auto insurers, banks and thrifts, business insurers, credit unions, health insurers, homeowner insurers, life insurers, long-term care insurers, and medigap insurers
American Red Cross’ “Preparedness Fast Facts”– The Red Cross’ emergency-specific checklists, developed using the latest research, science, best practices, and expert opinion

This week’s ROTW is Comeback America Initiative’s “Slide Pack.” CAI is a Bridgeport, Connecticut-based project headed up by founder/CEO David M. Walker. Why does that name sound familiar? On March 24 I wrote:

I used to follow former Comptroller General of the United States David M. Walker quite a bit. Appointed by President Clinton, Walker served as Comptroller General and head of the Government Accountability Office from 1998 to 2008. While at the GAO, Walker warned Americans about the nation’s long-term fiscal challenges as part of the “Fiscal Wake-Up Tour.” Frustrated by Washington’s refusal to confront these challenges, Walker left the public sector on March 12, 2008, to head the Peter G. Peterson Foundation and continue his work on righting a sinking ship. On September 17, 2010, it was announced that David Walker was leaving the foundation to launch a new project called the “Comeback America Initiative.” As the Founder and Chief Executive Officer of CAI, Walker continues to engage the public and promote fiscal solutions to America’s significant financial hurdles.

On the same day I penned the above, the former chief accountant of the United States appeared on CNBC’s Squawk Box and warned that America could be rapidly-heading towards a debt crisis. He said:

I think we’re going to have an adult conversation. We just need to have it sooner rather than later before we have our own U.S. debt crisis. You know, a U.S. debt crisis could come within the next two to three years. We have huge interest rate risk. We have the lowest average maturity of any sovereign nation or major nation on debt. We have historically-low interest rates. We’re adding debt at record rates. We have to rollover a great amount each year. Our largest holder of our debt is the Federal Reserve. I mean, that’s not an arm’s length transaction. And QE2 is supposed to expire on June 30. Wake up Washington- we’ve got a problem. It’s time to come to work.

David Walker designed the Comeback America Initiative “to promote fiscal responsibility and sustainability by engaging the public and assisting key policymakers on a non-partisan basis in order to achieve solutions to America’s fiscal imbalances.” CAI hopes to “keep America great and the American Dream alive for future generations.”


“Welcome to Comeback America Initiative”
YouTube Video Link

On the CAI website is an 84-page publication packed with easy-to-read charts entitled “Comeback America: The Nation’s Fiscal Challenge and A Way Forward.” This “Slide Pack,” as the CAI site calls it, provides what might be the best, most complete, easily-accessible picture out there of our nation’s financial health. Key charts include (in the order they were depicted):

• Growth of Government
• Defense, Social Security, & Medicare Per Capita
• Discretionary Spending Patterns
• Changes in Spending
• Composition of Current & Projected Federal Revenues
• Federal Debt Burdens
• Historical Deficit Levels
• Historical Receipts & Outlays
• Historical CBO Deficit Projections Vs. Actual
• Cash Vs. Accrual Federal Deficits (Fiscal 2000 –2010)
• Historical Debt Burdens
• Federal Debt Per Capita & The Political Party In Power
• Comparative Debt Burdens
• Fiscal Fitness Index
• Our Fiscal Future
• CBO’s Public Debt Projections
• Future Debt Burdens
• CBO Alternative Estimate of Projected Federal Deficits
• Growing Foreign Dependency
• Debt Maturity Trends
• Interest Rate Trends
• Interest Rate Sensitivity
• Federal Health Care Outlays
• Escalating Health Costs
• Historical Consumption Trends
• Health Cost Growth
• Comparative Health Costs
• Social Security Cash Flow
• Impact of Health Reform
• Entitlement Cost Growth
• Entitlement Programs Status
• Relative Defense Spending
• Historical Defense Spending
• Research Spending Trends
• Federal Revenue Composition
• Federal Revenue Trends
• Tax Burden
• Progressive Tax System
• Individual Tax Expenditures
• Effective Tax Rates
• Statutory Corporate Tax Rates
• Household Debt Levels
• Personal Saving Rates
• National Saving Rates
• State and Local Deficits
• State Property Tax Burdens
• State and Local Health Costs
• Pension and Health Obligations
• Pension and Health Funding
• Pension and Health Costs
• Total Liabilities and Unfunded Obligations Per Capita
• State and Local Ratings
• Statutory Debt Ceiling

Whew! You know that saying, “A picture is worth a thousand words?” Comeback America Initiative’s “Slide Pack” compilation speaks volumes concerning our nation’s present and projected financial health- yet still illuminates a path towards achieving fiscal responsibility.

(Editor’s note: CAI has ceased operations)

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Survival And Prosperity
Est. 2010, Chicagoland, USA
Christopher E. Hill, Editor

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